The UK’s Financial Conduct Authority (FCA) will ease rules on how financial advice can be delivered to consumers starting April, aiming to strengthen the country’s historically weak retail investment culture.
Under the new framework — called “targeted support” — advisers will be able to guide consumers on saving and investing without conducting full, individualized assessments. The move is part of a broader effort to encourage greater participation in shares, bonds, and pension investments.
🔹 Why This Matters
Only 9% of Britons currently receive regulated financial advice, far below levels in the EU and U.S.
- UK households allocate just 19% of financial assets** to retail investments
- EU average: 38%
- U.S.: 56%
“Targeted support could make a real difference,” said Yvonne Braun of the Association of British Insurers.
🔹 Key Features of the New Rules
- Firms can provide one-off guidance without extensive monitoring requirements
- No obligation to ensure consumers understand how fees are charged
- Firms must identify consumer segments and provide appropriate suggestions
- Companies wishing to offer targeted support must apply for authorization, with the gateway opening in March
🔹 Additional Regulatory Moves
The FCA also launched a consultation for digital pension planning tools, after firms said existing regulations hinder innovation in retirement projections.
Overall, the reforms aim to empower UK consumers to make better-informed financial decisions and participate more actively in long-term wealth building.